Austin Energy pays a rebate when a participating contractor replaces an older air conditioner or heat pump with a more efficient one. The amount depends on the new system's efficiency tier. It also depends on whether the work is part of the utility's Home Energy Savings program. Some households can also apply for Weatherization Assistance, which has its own enrollment and income rules. Every amount below is as of October 2026.
Austin Energy AC and heat pump rebate amounts
The table shows both of Austin Energy's rebate schedules. The first rebate column comes from the air conditioning rebates page, last reviewed February 24, 2026. The second comes from the Home Energy Savings page, last reviewed September 2, 2025. Austin Energy sets each tier by minimum SEER2 and EER2 ratings, and it adds an HSPF2 minimum for heat pumps.
| System and tier | Minimum ratings | AC and heat pump rebate (as of October 2026) | Home Energy Savings rebate (as of October 2026) |
|---|---|---|---|
| Central split or mini-split AC, tier 1 | 15.2 SEER2, 12.0 EER2 | $600 | $950 |
| Central split or mini-split AC, tier 2 | 17.0 SEER2, 12.0 EER2 | $700 | $1,200 |
| Central split or mini-split AC, tier 3 | 18.0 SEER2, 13.0 EER2 | $800 | $1,450 |
| Heat pump or heat pump mini-split, tier 1 | 15.2 SEER2, 11.0 EER2, 7.8 HSPF2 | $650 | $1,000 |
| Heat pump or heat pump mini-split, tier 2 | 16.0 SEER2, 11.0 EER2, 8.0 HSPF2 | $750 | $1,300 |
| Heat pump or heat pump mini-split, tier 3 | 17.0 SEER2, 13.0 EER2, 9.0 HSPF2 | $950 | $1,600 |
On its AC page, Austin Energy describes its standard rebate as "averaging $800." For heat pumps, the page adds: "Effective January 1, 2025, additional specifications for air source heat pumps are outlined in the CEE℠ Residential Heating and Cooling Systems Initiative Electric Equipment Specifications document." We did not review that document. Ask your contractor whether the model you are quoted meets it.
Who qualifies for an Austin Energy AC or heat pump rebate
The AC rebates page lists requirements including these:
- You must get your electricity from Austin Energy and use one of its participating contractors.
- Your home must be 10 years old or older. Every existing system being replaced must also be 10 years old or older.
- Rebates are only for replacing existing equipment. New equipment is not eligible if the existing equipment got a rebate within the last 10 years.
- All components of the system must be replaced. Austin Energy lists them as the "condenser, furnace/air handler, and evaporative coil."
- Your installer must size the equipment with an approved ACCA Manual J method or Austin Energy's Air Conditioning Sizing Guidance.
- Your participating contractor must submit the rebate application within 90 days of installation. Austin Energy says late applications will not be approved.
The page's exclusions tab says, "Air conditioning systems with electric resistance heating elements do not qualify." Its recipient rules add, "Participating contractors are not eligible to receive the air conditioner rebates." Austin Energy says funding is limited and given out on a first-come, first-served basis. It adds that "Offerings are subject to change without notice." The page gives no end date for these rebates.
Austin Energy says that if you take the standard AC rebate and then join Home Energy Savings within six months, "you could be eligible for an additional $200 rebate."
Home Energy Savings rebates and the zero-percent loan
Home Energy Savings is Austin Energy's whole-home program. A participating contractor "must perform the no-cost energy assessment and make all energy efficiency improvements, with a minimum of three qualifying upgrades." The page says Austin Energy has increased its AC and heat pump rebates. It adds: "Starting Dec. 1st, you can achieve rebates averaging $3,000 for qualifying projects." The page does not say which year that December 1 falls in.
The page gives two different end dates for its loan. Its introduction offers "our exclusive zero-percent loan, now through September 30, 2027." Its loan tab says the zero-percent rate "is available for a limited time, December 1 – September 30, 2026." We could not tell which date is correct. Confirm it with Austin Energy before you count on the zero-percent rate. The loan tab lists a minimum credit score of 600, loan amounts from $1,500 to $25,000, and terms of up to 120 months.
Austin Energy also runs a smaller program called Home Energy Savings Essential. Its page, last reviewed December 1, 2025, describes "simple and low-cost upgrades like adding insulation in your attic and sealing air leaks," with "rebates averaging $1,500."
Austin Energy Weatherization Assistance eligibility
The Weatherization Assistance page was last reviewed October 1, 2026. It says: "As of March 7, 2025, eligible households must be enrolled in the Customer Assistance Program or must be enrolled in the Medically Vulnerable Registry and meet the 80% Median Family Income requirements below." The home's improvement value must be $548,990 or less, excluding land value. The home must also be 2,500 square feet or smaller.
Austin Energy Weatherization Assistance income limits at 80% of Median Family Income
| 1-person household | $68,500 |
|---|---|
| 2-person household | $78,250 |
| 3-person household | $88,050 |
| 4-person household | $97,800 |
| 5-person household | $105,650 |
| 6-person household | $113,450 |
| 7-person household | $121,300 |
| 8-person household | $129,100 |
For participants, Austin Energy says it "offers a rebate and 0% financing for up to 10 years on a new air conditioning system." The page does not list the amount of that rebate.
The federal 25C tax credit has ended
Austin Energy's AC and Home Energy Savings pages still carry a note about the federal tax credit. The AC page says: "IRS eligibility criteria for tax credits may exceed Austin Energy's rebate eligibility criteria." The 25C credit is the energy efficient home improvement credit. IRS fact sheet FS-2025-05 says it "will not be allowed for any property placed in service after December 31, 2025." Our guide to the 25C tax credit explains the change.
Texas HEAR and HOMES rebates are not available yet
Texas runs its federal home energy rebates through the State Energy Conservation Office (SECO). In a status update dated August 21, 2026, SECO said: "Rebates are not currently available. The programs are currently in the planning and design phase, and a future launch date will be established once the state has approval from DOE."
SECO says the U.S. Department of Energy allocated $690 million to the state "to implement Texas Home Energy Rebates." In April 2026, SECO hired a third-party firm to help design and run the HOMES and HEAR programs. SECO says the HEAR program "will help income-qualified households" and that its rebates "can range up to $14,000 per household." We did not find HEAR income limits or a launch date on SECO's page.
Confirm the details with Austin Energy
Programs change. Before you sign a contract, confirm the current amounts, the loan dates and your contractor's status with Austin Energy. If you are still choosing equipment, see our guide on whether heat pumps suit Austin's climate. It covers the city's weather data, efficiency standards and Texas energy prices.